Exciting developments are underway as Microsoft (MSFT.O) and OpenAI join forces for a groundbreaking $100 billion data center project, as reported by The Information. This ambitious endeavor includes the creation of an artificial intelligence supercomputer dubbed “Stargate,” slated for launch in 2028.
While OpenAI has yet to respond to Reuters’ inquiries, insiders reveal the soaring demand for AI data centers, fueled by the rapid adoption of generative artificial intelligence technology. The project, expected to be 100 times costlier than existing data centers, will likely be financed by Microsoft.
The proposed U.S.-based supercomputer marks the pinnacle of a multi-phase initiative spanning the next six years. According to The Information, the projected cost of $100 billion stems from conversations with knowledgeable sources, emphasizing the magnitude of Microsoft’s endeavor.
The roadmap for these supercomputers, outlined by Altman and Microsoft, includes a series of phases culminating in Stargate’s launch as the fifth phase. Anticipating significant expenses, particularly for AI chips, Microsoft and OpenAI are navigating the complexities of procurement.
AI chip prices, notably high, pose financial challenges. Nvidia’s CEO, Jensen Huang, disclosed the hefty price tag of the latest “Blackwell” B200 artificial intelligence chip, further underscoring the financial stakes involved.
Despite the staggering costs, Microsoft remains committed to innovation. A Microsoft spokesperson affirmed the company’s perpetual pursuit of infrastructure advancements to push the boundaries of AI capabilities. However, they refrained from directly addressing the Stargate supercomputer launch.
With expenses potentially exceeding $115 billion, this initiative reflects a substantial investment, surpassing Microsoft’s previous capital spending. As the project unfolds, it promises to redefine the landscape of artificial intelligence and data processing on a global scale.
